Exam 23: Nature and Form of Sales

Newlog,which had developed a new process for making artificial logs,entered into an oral contract with Specialty Manufacturing.The contract provided that Specialty would manufacture a special part that Newlog needed to make its artificial log machinery.The contract provided that Specialty would make the part to Newlog's specifications.Newlog orally agreed to pay $5,000 for the part.Specialty made the part to Newlog's specifications,but Newlog refused to pay,claiming that the oral contract was unenforceable because of the statute of frauds.Is Newlog correct?

Consumer protection statutes may require a writing that is more detailed than the writing required by the statute of frauds provision of the Uniform Commercial Code.

Which of the following can satisfy the statute of frauds writing requirement?

A gift is a free transfer of the title to property.

An output or requirement contract is not enforceable unless the parties include an estimate of prospective amounts.

Under Article 2 of the UCC,in a situation where it is clear that the parties intended a contract,but a term in the acceptance conflicts with a term in the offer:

The provisions of Article 6 concerning bulk transfers are designed to protect creditors.

Janet Durham orally agreed to purchase certain computer hardware priced at $10,000 from Ted Stallings.The sale of the hardware also included a one-time setup service visit priced at $100.The total contract price amounted to $10,100.The computer hardware was delivered and set up,and Durham paid $10,100.Afterwards,Durham discovered that she could obtain the same goods and services from another seller for a total contract price of $9,100. She now seeks rescission of the contract,based on the fact that more than $500 in goods were involved in the sales transaction,that the contract between her and Stallings was subject to the statute of frauds as a result,and that the oral agreement between them was therefore unenforceable. Durham wants to return the computer hardware to Stallings,and receive reimbursement of $10,000 (She is willing to waive her claim to reimbursement for the $100 setup service visit.) Evaluate Durham's legal position in this matter.

With regard to transactions between merchants,failure to repudiate a confirming letter within ten (10)days after receipt binds the non-signing merchant,just as if he had signed the letter or a contract.

A bill of sale can be used as proof of an otherwise oral agreement.

An agreement to periodically deliver home-heating oil to a residential customer that does not indicate the duration of the contract

Defenses raised in a suit based on a sales contract differ greatly from defenses used in regard to any other type of contract.

Goods physically existing and owned by a seller at the time of a transaction are called existing goods.

A writing that is offered to satisfy the statute of frauds must have been written for that purpose.

Article 2 of the Uniform Commercial Code applies to the sale of:

Any modification of a sales contract must be supported by some form of consideration.

An offer to buy or sell goods may be accepted in any manner that is reasonable under the circumstances.

Which of the following is not a sale of goods?

If a contract calls for both rendering services and supplying materials to be used in performing the services,the contract is classified according to its dominant element.

Sales law includes special rules that apply to merchants.